Reliance Capital to list home finance business; allot 1:1 share

India Infoline News Service | Mumbai | September 14, 2016 12:15 IST

There is presently an estimated shortage of 100 million residential units in India. To address the needs of this sector, Reliance Home Finance has charted an aggressive growth plan in this space, and aims to increase its book size to over Rs. 50,000 crore in the next few years,”says Anmol A. Ambani, Director, Reliance Capital Ltd.

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The Board of Directors of Reliance Capital Ltd., a part of Anil Ambani led Reliance Group, today approved a proposal to independently list its home finance business –Reliance Home Finance Ltd (RHF) - on the stock exchanges.The independent listing of Reliance Home Finance is expected to unlock substantial value for existing shareholders of Reliance Capital. The listing of Reliance Home Finance will also lead to increased management focus and accelerated growth in the home finance business.

“The Hon’ble Prime Minister, Shri Narendra Modi, has set a goal of affordable housing for all by 2022. There is presently an estimated shortage of 100 million residential units in India. To address the needs of this sector, Reliance Home Finance has charted an aggressive growth plan in this space, and aims to increase its book size to over Rs. 50,000 crore in the next few years,”said Anmol A. Ambani, Director, Reliance Capital Ltd.

“We expect the listing and allotment of shares in Reliance Home Finance, free of cost, to unlock significant value for our almost one million strong shareholder family,” he added.

As per the proposal, 49 per cent stake in Reliance Home Finance Limited will be allotted to all shareholders of Reliance Capital, in the ratio of one share free of cost in Reliance Home Finance Limited for every one share held in Reliance Capital. Reliance Capital will hold a 51 per cent stake in Reliance Home Finance, and the company will be adequately capitalized to grow the lending book to over Rs. 20,000 crore in the next 18 months.

The proposal is subject to necessary shareholders and other approvals. Reliance Home Finance, a 100 per cent subsidiary of Reliance Capital, provides a wide range of loan solutions like home loan, LAP, Construction Finance and affordable housing loans. The company reported an AUM of Rs 8,259 crore (US$ 1.2 billion) during the quarter ended June 30, 2016.

Reliance Capital board approves plan to independently list home finance business on stock exchanges.

Forty nine per cent stake in Reliance Home Finance Ltd. to be allotted free of cost to nearly 1 million shareholders of Reliance Capital.

All shareholders of Reliance Capital to receive one free share of Reliance Home Finance Ltd. for every one share held in Reliance Capital.

Independent listing of Reliance Home Finance ltd. to unlock substantial value for all stakeholders.

Independent listing to bring increased management focus and accelerated growth in home finance business.

Reliance Capital will hold 51 per cent stake in Reliance Home Finance Ltd.

Reliance Home Finance Ltd. provides wide range of mortgages, loans against property, construction finance and affordable housing loans.

Reliance Home Finance Ltd. has assets of Rs. 8,259 crore (us$ 1.2 billion) as on 30th June 2016 and has “Care aa+” credit rating.

 

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